A car is purchased for Rs. 348000. Its value depreciates at 10% per annum during the first year and at 20% per annum during the second year. What will be its value after 2 years?
Present value of car, P = Rs.348000
Rate of depreciates for 1st year, p = 10%
Rate of depreciates for 2nd year, q = 20%
Time, n = 2 years
Now,
Value = P × (1 - p/100) × (1 - q/100)
= 348000 × (1 - 10/100) × (1 - 20/100)
= 348000 × (1 - 1/10) × (1 - 1/5)
= 348000 × 9/10 × 4/5
= 34800 × 9 × 4/5
= 6960 × 9 × 4
= 25056
∴ Value of the car after 2 years is Rs.25056.